Daily Management Review

Foxconn Will Make Electric Vehicles At Its Wisconsin, US, Plant Or In Mexico


Electric vehicles may be manufactured by Foxconn, the major Apple Inc supplier, at its factory in Foxconn which is a high profile one but is currently in some trouble, said chairman of the Taiwanese company. However the company also choose to Mexico for this project.
At a White House ceremony in 2017, an investment of $10 billion was announced by Foxconn in Wisconsin which was touted by then-President Donald Trump as evidence ab out his ability to bring back manufacturing jobs to America. However the future of that investment is uncertain. 
Initially, the factory was planned for manufacturing of advanced large-screen displays for TVs by Foxconn. Later on the company said that smaller liquid crystal display screens would instead be made by it at the facility and still later it said that the factory would be used for making servers.
Because of the proximity of the Wisconsin plant to the traditional heartland of US auto making, therefore the infrastructure was there in Wisconsin to make electric vehicles (EVs), said Foxconn Chairman Liu Young-way while speaking in Taipei.
“A lot of work depends on electronics and software for the EVs. We thought maybe it’s a good place to make EVs,” Liu said.
“We are also thinking about Mexico. We are still deciding,” he however also said. That meant that the Taiwanese company will choose between Wisconsin and Mexico by the end of this year itself for the project.
It would be a boon the United States government if the company decides to manufacture its EVs Wisconsin. Liu however averted any questions about politics as he said that the decision of choosing the location for the factory for making EVS will only be made according to the best business sense.
There have been speculations about whether Foxconn would join hands with Apple to made make a car simply because the company, formally called Hon Hai Precision Industry Co Ltd and the largest contract electronics manufacturer of the world, is the most important supplier and contract manufacturer for the iPhone maker.
Liu dismissed the speculations and said that those were “just a rumour”.
Within the last year or so, a number of deal related to the production of EVs have been announced by Foxconn with auto companies which includes the one with the United States based electric car maker Fisker Inc, China’s Byton and Zhejiang Geely Holding Group, and Stellantis NV’s Fiat Chrysler unit.
Over the next year, the total investment in new businesses including EVs would be about T$10 billion ($354 million) annually, said Liu.
He added that the company is targeting the markets of China, Europe and the United States for its EVs and the company hopes that it would be able to bring down the development time and costs for auto makers because of its expertise in the integration of supply chains.
While describing Foxconn to be the “new kid in town” in the auto industry, Liu said that the company needed to ramp up its capacity as soon as possible to earn trust from clients.
“It’s just the beginning of this EV era. I will say in 3 or 4 years you will see significant growth. We have to be ready for that.”